The Influence of Accountability and Transparency on the Quality of Financial Reports at the Jelutung Branch of the Islamic Pawnshop in Jambi City

Suprapti; Youdhi Prayogo; Khairiyani

doi:10.63922/ijebir.v5i03.3606

Suprapti Universitas Islam Negeri Sultan Thaha Saifuddin Jambi
Youdhi Prayogo Universitas Islam Negeri Sultan Thaha Saifuddin Jambi
Khairiyani Universitas Islam Negeri Sultan Thaha Saifuddin Jambi

DOI: https://doi.org/10.63922/ijebir.v5i03.3606

Keywords: Accountability, Financial Reporting Quality, Good Governance, Islamic Financial Institutions, Transparency

Abstract

The growth of the Islamic financial sector and the increase in digital transactions require financial institutions to present quality, transparent, and accountable financial reports in accordance with sharia principles. This study aims to analyze the effect of accountability and transparency on the quality of financial reports at the Jelutung Branch of Pegadaian Syariah, Jambi City for the 2023-2025 period. The study used a quantitative approach with a survey method. The study population was all 35 employees of the Jelutung Branch of Pegadaian Syariah, Jambi City, using a total sampling technique so that the entire population was sampled. Primary data were obtained through interviews and Likert-scale questionnaires. Data analysis was performed using Structural Equation Modeling (SEM) based on SmartPLS version 4.1.1.6 through outer model testing, inner model testing, and hypothesis testing. The results showed that accountability had a positive and significant effect on the quality of financial reports with a coefficient value of 0.570, a t-value of 4.202, and a p-value of 0.000. Transparency also has a positive and significant effect on the quality of financial reports, with a coefficient value of 0.366, a t-value of 2.361, and a p-value of 0.018. The conclusion of this study is that increased accountability and transparency can improve the quality of financial reports and strengthen public trust in Pegadaian Syariah.

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